The withdrawal of Bitcoin hashrate, a metric that measures declines in relative computing power on the Bitcoin network, has fallen to levels not seen since December 2022, just after FTX collapsed in the depths of the previous bear market. According to CryptoQuant data, Real Bitcoin Hashrate Withdrawal currently stands at -7.6%, indicating the potential price floor of the decentralized asset.
The case for the market base is also supported by other metrics such as Bitcoin Exchange Reserve, Miners Position Index (MPI) and Bitcoin Miner Reserve, each suggesting low selling pressure.
Over the last few weeks, several indicators have suggested that miners are starting to capitulate, indicating potential buying opportunities for Bitcoin (BTC).
At the beginning of June, Charles Edwards, founder of crypto hedge fund Capriole, argued that the Bitcoin Hash Ribbons indicator developed by the firm was giving a buy signal reflecting the relative slowdown in the network's computing power.
Market analyst Will Woo echoed Edwards, explaining that the market will not reach new highs until weak miners are forced to cease operations – an event that usually occurs in the weeks following a halving event but appears to be continuing in the current cycle.
More recently, Bitcoin miner withdrawals dropped by as much as 90% post-halving, indicating that selling pressure from miners has diminished and Bitcoin's price will continue to rise.
While we await the April 2024 halving event, financial services firm Cantor Fitzgerald has published a report highlighting the challenges miners will face in the wake of reduced block subsidy.
According to the report, if the market price of Bitcoin falls to $40,000, some of the world's largest mining companies will be forced to capitulate, highlighting the state of the mining industry post-halving.#Bitcoin#Blockchain #CryptoNews